AT&amp;T Announces iPhone 3G Pricing and Tips to be iReady

OK, deep breath. Let's see how this works out: AT&T today announced its iPhone 3G pricing, including upgrade pricing for existing iPhone users:

AT&T today announced iPhone 3G pricing for new and existing AT&T customers, several attractive voice and data plans, and tips on how to be "iReady" when iPhone 3G goes on sale at AT&T retail stores at 8 a.m. local time on Friday, July 11.

Pricing and Eligibility

AT&T is making it easy for customers to prepare for their iPhone 3G purchase by posting "Get iReady" tips and frequently asked questions at www.att.com/iphone. The site also will include a link for customers to check their upgrade eligibility and other wireless account information.

So I jumped over to this site to see what was up with my upgrade eligibility. (And seriously, how the heck could I not be eligible?) This is what I got:

L164: We apologize for the inconvenience, but we are currently conducting system maintenance that prevents us from retrieving your account information. Please try to log in again at a later time.

Ah, AT&T. You cease to amaze me. Yes, that's what I meant.

Only AT&T would announce information of this magnitude and then take their site down for "system maintenance." Idiots.

Anyway...

iPhone 3G will be available for $199 for the 8GB model and $299 for the 16GB model. These prices require two-year contracts and are available to the following customers:

iPhone customers who purchased before July 11

Customers activating a new line with AT&T

Current AT&T customers who are eligible, at the time of purchase, for an upgrade discount

Existing AT&T customers who are not currently eligible for an upgrade discount can purchase iPhone 3G for $399 for the 8GB model or $499 for the 16GB model. Both options require a new two-year service agreement. In the future, AT&T will offer a no-contract-required option for $599 (8GB) or $699 (16GB).

Again, who are these people that own iPhones but are not eligible? Am I missing something here?

AT&T will offer FamilyTalk plans, with bundled voice and unlimited data, starting as low as $129.99 a month for two iPhone 3G lines. Up to three additional iPhone lines can be added for $39.99 each.

Unlimited text messaging can be added for an additional $20 ($30 for FamilyTalk plans of up to five lines); $15 (1,500 messages), or $5 (200 messages).

So this verifies what I previously thought: The very lowest cost iPhone plan (with SMS) is $74.99 a month before taxes and fees, or about $90 a month in real-world cost. This is about $15 more a month than what I'm paying now, or $360 over the two year contract.

Business pricing is brutal: $45 plus a voice plan, for a total of about $120 a month before taxes and fees. Yikes.

I, for one, am sticking with the first gen. phone. $10/month data cheaper, $5/month texting cheaper, durable/sratch-resistant back, cheaper, etc.
Actually, I sold my 1st gen for $415 on ebay the day before the 2nd gen came out. I've now got to find one for $150 or something like that after the new ones come out on the 11th.
Wish me luck.

raaj,
EXACTLY. New iPHone owners should be able to opt-out of the 3G service. Less than 20% of the nation's consumer base actually lives in areas where it works. If I didn't have to pay the extra $10/month ($240/2year contract) I would consider the new one.
Lame.

I'd really like to see a plan with 200 voice minutes at $10 less per month. I just don't spend that much time on the phone and would rather not pay $40 a month for the 100 or less minutes I'm actually going to use voice.

@ weedmonk:
"iPhone users deserve AT&T."
That is almost too cruel to the JoeUser who likes the iPhone because it's easier to use and intuitive than all other WinMo/Symbian/BB contraptions out there.
On the other hand, the hardcore iSuckUps and iShowOffs that lap up anything with a fruit logo on it, really deserve AT&T.

These guys are really a band of crooks... I can't believe some people are gonna shell that amount of money for a crappy coverage with average 3G... long live the unlocked/jailbroken iPhones on t-mobile !!! (not 3G of course!)

Actually, I switched from Verizon to ATT 2 yrs and 4 months ago to get a cheaper RAZR from BestBuy. I got exactly the same service, and BETTER customer care from ATT. I bought the RAZR's from BestBuy, and ATT replaced it after it became faulty after 10 months. The entire phone call took ten minutes. Then I got a free Treo from TDAmeritrade, which stopped working 2 weeks short of one year after ATT activation. I called Palm, and they wanted around $100 just to look at it and more to fix it. Palm suggested that I call ATT. I told them that I did not buy it from ATT, but they still replaced it and gave me 90 more days of warranty! That call took less than 15 minutes, including waiting. On the contrary, Verizon REFUSED to give both of my phone upgrades a discount [ my 2 yr contract expired 1 yr before, so I was in year #3], telling me that I only qualified for one discount, even though I signed a deal for "New [phones] every Two [years]" 3 yrs before. I was definitely entitled as I read the contract shortly after I hung up on the Verizon jerk. Now I get rollover minutes from ATT and have 3,000 saved up. Verizon will not let you keep left over minutes. I'm glad that I have ATT, but unhappy to hear about the iPhone service prices. So for me, ATT treated me much netter than Verizon and 3G coverage is all over New Jersey. Maybe I'll get an iPhone, but maybe nnot. Eiother way, I'll stick with the better service, ATT. Verizon just gave 'Get screwed every Two'. Have fun with them as they suck and I will never be back.

Also in contrast. I bought a USB Flash thumb drive from DELL with a $50 gift card and $30 on my credit card. Dell charge me the full $80 and zeroed the gift card balance, then refused to credit me the money after several emails and 3 phone calls. I call AMEX for the 4th call and demanded that they settled it with a 3 way call to DELL. $50 took me almost 2 hrs of my time. Kinda get crazy over principles sometimes.

Been with Cingular/ATT since 2001. Roll over and unlimited mobile to mobile are the shinitz. I have never had one single problem with them. In that time frame I have had two Razr's and a BlackJack. The first RAZR I killed by droping it in a pool, the second one still works fine and the I bought the black jack referbed from ATT. Once my Exchange support job was up I sold it on Ebay for more than I bought it for.
I want a iPHone, as my iTouch is the greatest thing since sliced bread, but NO FRACKING way am I paying for a $30 a month 3G Plan. I had 3G on my Black Jack (work payed for it) and it was ok, but it had very limited coverage.
I would like a iPhone with out a data plan, and a $20 text messaging plan. I need SMS for work pages. I have no desire to do any surfing on the iPhone over 3G or Edge.

I don't know why I am defending these creeps, but the math is valid. I will pay an additional $10 month , but that's without text messaging, which costs more. So Paul is correct about the $15 more each month, which is affordable to me, but not to most. They suck too. I probably will use data rarely, and therefore not really worth it. Maybe I'll just stick with a Palm Centro with no data plan, since I mostly sit in front of a computer [with internet access again] all day at work unless I'm doing vascular work and body interventional procedures. But even then, I sit to dictate the case after the procedure and use a computer with internet access again. I sure as heck can't answer the phone or mobile web surf when I'm inserting a vascular stent! OK, ATT sucks too. although customer service was very good:)

@ weedmonk:
"iPhone users deserve AT&T."
We all deserve better than AT&T -- and Verizon. Especially Verizon - whose CEO is anxiously awaiting when the industry's biggest force for innovation right now (steve jobs) dies. Nice guy, huh? nice focus on the needs of customers.
Hey, Verizon's got a great network. And a nazi-like, anticonsumer philosophy that has produced junk interfaces.

@cesjr - "Especially Verizon - whose CEO is anxiously awaiting when the industry's biggest force for innovation right now (steve jobs) dies."
First of all, that sentence is about as well thought out as your opinion. But, of course, you are entitled to that opinion. Have you ever heard of grammar or proofreading?
Secondly, only the most rabid iCabal member would read "Steve Jobs eventually will get old" in its full context and equate that to Seidenberg waiting for Jobs to die while calling Seidenberg "nazi-like". I am guessing that you consider Bill Gates to be the anti-Christ.
--tayme

Tayme,
"only the most rabid iCabal member . . ."
this is a personal attack. please stick to the substance.
"Have you ever heard of grammar or proofreading?"
More personal attacks, devoid of substance.
"I am guessing that you consider Bill Gates to be the anti-Christ."
This is speculation and a strawn man - I never said anything about bill gates.
As for it being "my opinion" or interpretation of Seidenberg's comments, yes, that's the case. Of course many others have said the same thing. Do you have another explanation for his comments? Because I didn't see one from you. Par for the course - you engage in personal attacks and stay away from the substance.
Look , if you have a more innocous interpretation of Seidenberg's comment, please advance it. I'll be happy to debate with you about what he meant - if you even want to debate it rather than just make person attacks devoid of substance, that is.
Yes,

"Steve Jobs eventually will get old" sort implies that he will live a long life, or at least longer than dying of cancer tomorrow, so I see your point. Maybe it wasn't so nasty a comment. But I can certainly taste those sour grapes in some of his words.

@cesjr - My opinion is that he was saying that eventually, the popularity of Steve Jobs will wear off., or even possibly that the novelty of the iPhone. That is no more out of line than you thinking that he meant he is waiting for Jobs to die.
As for the rest of your post, how is you calling Seidenberg "nazi-like" not a personal attack, especially considering the origin of his family name? What does Seidenberg's comment or Verizon in general have to do with this article at all? If you want to come here and blast your troll FUD, I will continue to respond in kind.
--tayme

Look, here comes cesjr in his holy-fight against all criticism against Apple.
"Steve Jobs is the greatest force of innovation in the industry." Wow !! Just Wow !! In one stroke you have marginalized the good stuff coming out of Google [not to mention Microsoft and Yahoo.]
FWIW, I agree with Seidenberg in his comments that Apple is handed the crown too easily without it even performing to the same standards as all other players in the field are evaluated on. Jobs says "We have a new feature. A scientific calculator!" I hear Oooohs. He says "We !now have A-GPS that is even better than normal GPS." I hear Aaahs! No one questions why there is no ability to do turn-by-turn directions. All its competitors are stepping up to 5MP cameras with advanced features like flash and auto-focus. The revolution that is the iPhone 3G is stuck at 2MP!! because Steve says that is all we need. The list goes on.
Even with all these valid shortcomings, the press at large has seemed to have crowned the iPhone 3G to be new king of the hill. You get snide comments on the Samsung Instinct, HTC Touch Pro and LG Dare that even after bettering the iPhone feature for feature, they are somehow an also-ran and a yawnfest.
Steve Jobs is anointed the greatest living force of innovation.

Yikes...speaking of proof-reading...
"the popularity of Steve Jobs will wear off., or even possibly that the novelty of the iPhone."
should be
"the popularity of Steve Jobs or even possibly that the novelty of the iPhone will wear off."
My apologies,
--tayme

"how is you calling Seidenberg "nazi-like" not a personal attack, "
Because personal attacks are made against the person arguing.
"My opinion is that he was saying that eventually, the popularity of Steve Jobs will wear off., or even possibly that the novelty of the iPhone."
You have a rather dim view of people if you think they buy products based on the "popularity" of some rich executive. Most people interested in buying an iPHone are not doing so because they like steve jobs. In fact, anyone that knows much about him has probably heard he is a prick.
People want the iPhone not because of steve jobs or because it's "novel" - but rather because its so easy to use (no manual required) and its features are actually usable and useful - not just a list of bullet points in a feature list.
most people read Seidenberg's comments for what they were - sour grapes that someone (steve jobs and apple) has upset the apple cart in the cell industry. Sure, his comments are open to interpretation. But most people - even apple fans - wonder if apple can keep up the level of innovation with Steve gone. Seidenberg was musing how it would be great if Steve was gone (and that innovation gone too).
This is no big surprise. The iphone is bad for Verizon. There is no other way of seeing it. It challenges their whole model of controlling the user experience for every phone on their network. Of course apple is doing the same - but they try to attract people with a good experience. Verizon attracts people with their network, then take advantage of people on the phones (monthly charges for nav/GPS, turning off sync except over the air, etc.)
Seriously, it's companies like Verizon that set up this system where all cell phone apps have to be approved by the carrier - this has had a horrible, severely debilitating impact on the quality of phones and software on phones.
Apple broke through this broken system - with AT&T. Verizon turned them down. Again, surprise surprise.
Verizon doesn't want change. They want the old broken system to remain in place.
At the end of the day, AT&T sucks. But Verizon (the only company with a better 3G network) was never a viable option for the iPhone. It's too antithetical to their current mode of business.

@cesjr - "Because personal attacks are made against the person arguing."
Wrong...you personally attacked Seidenberg by comparing him to an evil empire that brought the holocaust down on the Jewish nation.
"Seidenberg was musing how it would be great if Steve was gone (and that innovation gone too)."
And you interpret this as him *waiting for Jobs to die*. You, my friend, need to consider therapy to take care of your negativism...I am saying this as an opinion...not an attack.
--tayme

"@cesjr - "Because personal attacks are made against the person arguing."
Wrong...you personally attacked Seidenberg by comparing him to an evil empire that brought the holocaust down on the Jewish nation."
No, a personal attack of the kind I accused you of is against the person arguing. See, e.g.,
"An ad hominem argument, also known as argumentum ad hominem (Latin: "argument to the man", "argument against the man") consists of replying to an argument or factual claim by attacking or appealing to a characteristic or belief of the person making the argument or claim, rather than by addressing the substance of the argument or producing evidence against the claim."
http://en.wikipedia.org/wiki/Ad_hominem
This is what you did - you made a personal attacks on the person making the argument (me). It's a type of logical fallacy, because I might the worst person in the world but still be correct.
"You, my friend, need to consider therapy to take care of your negativism.."
This is a personal attack, an ad hominem attack, again. Calling it "opinion" doesn't white wash it. It's an insult to tell someone they need therapy.
Is that all you've got - insults and ad hominem attacks?

cesjr, bringing up one of the most vile human beings ever that slaughtered millions of people and engulfed nearly the entire planet in world war is a sure way to lose an argument. If you don't like Verizon, you leave, plain and simple. The same could not be said of Germany during that time.
This type of rhetoric actually has a name, besides Godwin's Law: Reductio ad Hitlerum. http://en.wikipedia.org/wiki/Reductio_ad_Hitlerum

"cesjr, bringing up one of the most vile human beings ever that slaughtered millions of people and engulfed nearly the entire planet in world war is a sure way to lose an argument."
I never brought up Hitler's name. I referred to Verizon's "nazi-like" behavior. It's really just an adjective to refer to their business model of controlling the user experience/software, etc. of all phones on their network, to the detriment of consumers. I can use "autocratic" or "fascist" if you would prefer - they mean the same thing.
I wasn't using the "poison the well" fallacy, i.e., hitler supports X, therefore X must be bad. I was using nazi as a descriptive term for Verizon's controlling tendencies on its network, and then explaining why that has been bad for consumers. Of course nobody here is even taking the opposite position - that Verizon's fascist approach is good for consumers.

@cesjr - "Of course nobody here is even taking the opposite position - that Verizon's fascist approach is good for consumers."
You and I have already had that debate...and you were entirely wrong then. My argument was that it is good for *SOME* customers because they want a simple to use phone that makes and receives calls and the occasional text message was met by your response "That just means they don't have an opinion." and more of you comparing Verizon to Nazi Germany, which is insulting to millions...including, I would dare to guess, the CEO, Seidenberg. You then went on to change your entire argument by trying to assert that one's opinion can be considered fact. Sorry, but I am of the belief that everybody is entitled to an opinion and that opinion and fact are entirely separate things.
http://community.winsupersite.com/blogs/paul/archive/2008/06/12/iphone-3...
You should just admit it...you post here simply as a troll. I choose to take up the other side. The funny thing is, I am not anti-Apple or pro-MS...just a guy that is sick of people like you spreading FUD.
--tayme

"My argument was that it is good for *SOME* customers because they want a simple to use phone that makes and receives calls and the occasional text message was met"
Right, it's good for customers that don't want a smartphone. I'll concede that. Now, is it your position that Verizon's fascist control is good for smartphones?
"You should just admit it...you post here simply as a troll. "
More personal attacks.

@cesjr - "Now, is it your position that Verizon's fascist control is good for smartphones?"
As good as it is for Apple to not allow me to install OS X on anything except Mac hardware. I want to do that...Oh, wait...your next argument is that they do that with the user experience in mind. I ask again, how do you *KNOW* that Verizon does not have that in mind as well? Do you have insight to the Verizon board and/or device selection committee that the rest of us don't?
Just so you are clear, I do say that Verizon's locking of phones, even smart phones, is good for *SOME* customers...just like Apple's control over the installation of OS X or for that matter, applications on the iPhone is. It is not good for *ALL* customers, but certainly for some.
Again, you are back to thinking that your opinion is the *ONLY CORRECT OPINION* or that the majority opinion is fact. That is where you fail in these debates.
I am done with this debate, its vacation time. Happy Independence Day to all!!!
--tayme

"Again, you are back to thinking that your opinion is the *ONLY CORRECT OPINION*"
The same is true for Paul, but again no complaints from you. You make this charge selectively, when you don't like the message.
Further, this is just another form of personal attack, where instead of arguing whether I am right or wrong, you whip out a personal smear - namely, that I'm arrogant and think everyone else is wrong.
Whether I am arrogant or not is beside the point. Logically, I can both be arrogant and right.
With respect to the substance, again - few people (if anyone) seriously thinks that Verizon (or other cell carriers) fascist control of devices on their networks has been a good thing. Walt Mossberg probably explained it best. If you would like, please read:
http://mossblog.allthingsd.com/20071021/free-my-phone/
If you want to think having Verizon as a gatekeeper for innovation is a good thing, go ahead. It's a free country And, yeah, I think you're wrong about that.

cesjr.. give your incessant "innovation" babble a rest, will ya?
How do you define innovation? Who patented what innovation is? Is the fact that VCast multimedia service and VZNavigator navigation service that works on many companies' hardware in a transparent manner not innovation enough for you in mobile space? This is precisely the kind of behavior that Seidenberg objected to in his speech against the free-pass given to Apple.
But then again, what can we expect from someone who thinks Steve Jobs is THE greatest force of innovation in the industry? [This is an observation - not a personal attack.]

Back to the subject, this is super highway rip-off service courtesy of AT&T. Any justification of the iPhone 3G just went out the window, about as fast as I dumped AT&T. What good is a state of the art phone on a super high, lacking nationwide 3G network, and now price gouging. AT&T has pretty much shot Apple in the foot with their great customer service.
Versus my Sprint Simply Everything Plan, to equal what I get for $99.99, I would have to pay an additional $50 per month on AT&T's plans. That would be $600 a year or $1,200 for a 2 year contract. What possible incentive would I have to switch? Even with Sprint's crappy customer service, their network at least in the Dallas/Fort Worth metroplex has never failed to give me full EV-DO data speeds and full 3G voice service. Now I think I might owe a Sprint rep an apology, as the Samsung Instinct looks more like a deal.
So much for the iPhone 3G. Perhaps Apple should rethink buying out their AT&T contract, and going with both Verizon and Sprint. I really hope consumers aren't so desperate for the phone that they consider this consumers nightmare package. There is zero justification for the phone or the plan at this juncture.
My question is this. If Steve Jobs is all about the consumer and the consumer experience, where the hell is his leadership on this?

subzerohitman721 -
Sprint will be lucky if they're around in 18 months -
Anyways, the Instinct's lowest cost plan is the same price as iPhone 3G ($69), and I doubt Verizon is much different for their 3G plans. I heard they were $30 per month on the 3G data, which is the same as the iPhone.

"I heard they were $30 per month on the 3G data"
Verizon's pricing differs depending on usage. For a featurephone like the Voyager or Dare, the price for unlimited Internet usage is $15/month. That's a part of the VCAST VPak, which gives you the VCAST features as well. For someone that seems to know so much about how Verizon is evil, not knowing some simple details is telling.
Pricing is different for genuine smartphones though, but they do have various plans available. In any case, tethering is available as well, something that the iPhone does not offer.
Anyway, comparing Verizon to Hitler, Nazi's, or fascist regimes is really just wrongheaded. There is simply no comparison, because at the end of the day, you have a choice as to which wireless carrier you wish to use.

tayme, your avatar is the notorious ‘exploding head’ scene where renegade scanner Darryl Revok (Michael Ironside) makes a man’s head explode in all its gory glory, just using the powers of thought. I thought that I recognized it from the 1981 movie, that i saw years later on TV. It's always good to know where your head's at!
Here's the URL to verify:
http://www.virginmedia.com/movies/movieextras/top10s/Top-ten-gruesome-mo...

tayme said:
@cesjr - "Now, is it your position that Verizon's fascist control is good for smartphones?"
As good as it is for Apple to not allow me to install OS X on anything except Mac hardware. I want to do that...Oh, wait...your next argument is that they do that with the user experience in mind. I ask again, how do you *KNOW* that Verizon does not have that in mind as well? Do you have insight to the Verizon board and/or device selection committee that the rest of us don't?
Faulty reasoning, Apple provides a tangible product, Verizon provides a service.
As to Apple, they have shown no compunction to open up OS X and why should they? There is nothing to stop you from installing OS X on your PC. You want OS X on your Dell/HP/Home-built rig then do it. How is Apple required to make OS X available for the PC manufacturers which is their competition despite what many who believe its Apple vs. MS (at least at the curent tim).
As to Verizon, I find the defense of them laughable, in the northeast Verizonites (TM) makes X-box fanboys (Paul) look sane. Got news for you all. Verizon is just as bit as scummy as every other Cell Carrier and in some cases worse. Whether they are the largest is irrelevant to (as I've heard it argued here in other threads), biggest does not equal best.
For me they are too much like my cable provider. Get the hell out of my way with your "valued added services" and just provide the signal.

cesjr said:
subzerohitman721 -
Sprint will be lucky if they're around in 18 months -
Anyways, the Instinct's lowest cost plan is the same price as iPhone 3G ($69), and I doubt Verizon is much different for their 3G plans. I heard they were $30 per month on the 3G data, which is the same as the iPhone.
My Comments
Cesjr,
You my friend remind me of the republican propaganda station commonly known as Fox News. You did a 30 second glance at the plans, but didn't bother with the details. Details are so hard to get right isn't it? We'll let me spell out where your argument falls way short.
With the Instinct plans, you were correct that the price was $69, however you failed to mention the differences. With that $69 you get Unlimited Texting which under the AT&T plan is an addtional $20. Do the math. Thats $240 a year or $480 for two years. Again, where do I have the financial incentive to switch? The Sprint Simply Everything plan at 99.99 is still the best deal in the U.S. mobile market.
To equal what I get for 99.99, I'd have to get their unlimited plan for $129.99, plus the unlimited text which is $20 more. Thats $149.99. This isn't including taxes and fees yet. Thats an additional 50 bucks per month.
What am I missing from this AT&T plan? I get unlimited Sprint TV, which isn't currently being offered on the iPhone. On certain phones on the AT&T network offer a similar service. So I would actually lose one of the coolest features of my current phone or the Instinct. The iPhone doesn't support a TV function. The Instinct is capable of displaying live TV and radio, sending and receiving multimedia messages, voice commands and video recording capability all features not found on the iPhone. The Instinct also boasts a slightly longer lasting battery than the iPhone, which is user replaceable. iPhone doesn't support stereo audio in bluetooth, but the Instinct does.
So in the end vs the iPhone for the Simply Everything Plan bargan and a few tradeoffs, the Instinct is a value for the price they are asking. The iPhone clearly under the AT&T plan is not. Now I understand your positions with Verizon. Its one of the reasons why I did not go with the carrier. However, the term Nazi-like is definitely not appropriate. Now if you said restrictive like Apple's insistence on its own hardware for its operating system, that would have been a more accurate analogy.
Dude1313 said:
As to Apple, they have shown no compunction to open up OS X and why should they? There is nothing to stop you from installing OS X on your PC. You want OS X on your Dell/HP/Home-built rig then do it. How is Apple required to make OS X available for the PC manufacturers which is their competition despite what many who believe its Apple vs. MS (at least at the curent tim).
My comments:
Simple, Dude. Its all about marketshare. There are quite literally millions of home users, IT administrators, and other parts of the computer industry that will not pay for Apple's hardware price. What financial incentive does a major institution such as Bank of America have to pay more for a PC, when they can buy more Windows machines? And don't give me this myth about price as I've stated before. Apple desktops cost well over a grand per machine. The cheapest iMac comes in at $1199. Thats just with a core 2 duo. Lot of cheaper Windows machines are now loaded with core 2 quads. Windows-Based PC's can run a similar hardware set for well under a grand. Infact these days, the PC desktops for business are coming with more hard drive space, more memory, better processors and most importantly: Windows Vista.
Vista is still better against rootkits and Microsoft is still faster and more efficient at patching Zero Day exploits. Also with the deep ecosystem of technical support, its like comparing Toyota to Chrysler USA. The bottom line is that even with all of Apple's success, they are still stuck at 3% of the world's desktop market. Apple has yet to dent the Windows marketshare.
So Apple has a problem. They can't break out marketshare. Paul has consistently stated the current Apple marketshare. How do you do that? Its quite simple. Its called Dell, HP/Compaq, Lenovo, AMD, Acer/eMachines/Gateway, Fujitsu, and all the other PC manufactuers on the market. Its simple mathematics. Just in the sheer number of licencees by which the number sold of OSes to the mass market, Apple is hindering itself with this our machines only strategy. If Apple is to fully transition to a consumer electronics company, I believe making its own computers and charging a grand is preventing mass market adoption. Yes, Apple and its Macs are selling very well. The problem is the rest of the PC market isn't rusing out to buy Macs. Especially now that the U.S. economy is in a bear market, people will be saving their money. Macs will be the last thing on middle class American's minds, in the midst of over 4 dollar gas. Rising food, energy, materials, and other cost will eventually lead to declining sales. A major energy spike will definitely do it. Apple's stock has plummeted from its 52 week high of $202.96 to $170.12.
Also Apple is facing a lawsuit with a scheme to file false financial statements, thereby concealing millions of dollars in executive compensation though the backdating of stock option grants. This was reported by InformationWeek. This isn't the first time this has happened, this happened in 2006.
So Apple does have problems. While the Macs are selling fine, they still aren't coming close to true competition with Microsoft. The only way to do that is to go head to head. But when oil gets up to $200 a barrel, I think you'll definitely see a decline in Apple sales. So Steve Jobs has a strategic choice. Do we keep our current strategy and take a huge hit when oil spikes? Or do we do things the Microsoft way and stay in business over the long term? Being the fact that Gates just retired, I'd choose to be in Gates shoes right now.
Peace.

"For a featurephone like the Voyager or Dare, the price for unlimited Internet usage is $15/month. , , , Pricing is different for genuine smartphones though, but they do have various plans available." In other words, you've got NOTHIN to contradict my statement that verizon's 3g smartphone plans are in the same range as AT&

BTW, from what I've read, the new class action lawsuit is about damages from market losses due to the old backdating options scandal. From what I've read, there was no new scandal of backdating. It just seems as if some lawyers developed a plan to make more money, IMO.
Two lawyers in a bar see a beautiful woman. One says, "See that babe? I screwed her." The other lawyer says, "Oh yeah, outta what?"